The Real Estate Roundtable

After bottoming out in 2024, #CRE is entering a new cycle with potential for strong returns. While the path ahead may be challenging—with high interest rates, geopolitical uncertainty, and fierce competition from other asset classes—opportunities are equally vast. Insights from top players like Blackstone and Nuveen, a TIAA company point to improved asset values, rising liquidity, and the resurgence of retail, industrial, and multifamily sectors. The U.S. market, with its robust economy, stands out as a key beneficiary of renewed investor interest. To unlock this recovery's full potential, policymakers must support incentives that attract global capital, modernize zoning regulations for mixed-use development, and address infrastructure investment disparities.

A major win for housing in NYC. The City Council’s passage of the City of Yes proposal marks a turning point in tackling the city’s housing crisis. By streamlining zoning, this plan enables vital #AffordableHousing growth and economic revitalization. https://lnkd.in/dAN-GAhF #CRE #HousingSolutions

💼 The return-to-office (RTO) movement remains a pivotal issue, with major employers beginning to mandate full-time office attendance. This trend highlights the enduring value of physical workplaces in fostering collaboration, culture, and innovation. According to a recent article by Fast Company, hybrid work may improve employee morale, but 85% of companies globally now expect office attendance at least three days a week. Similarly, Bloomberg notes that RTO is essential for many organizations locked into long-term commercial leases, as office utilization helps justify real estate costs. Ensuring vibrant office spaces supports local economies, sustains urban infrastructure, and enhances workplace connections. Policymakers and industry leaders must back efforts to drive office attendance while adapting spaces to meet evolving work trends. As the RTO discussion evolves, we remain committed to advocating for solutions that strengthen communities and sustain the commercial real estate sector.

As a new Congress and administration take the reins of government next year, The Real Estate Roundtable is focused on working with policymakers across the aisle to advance effective policies for the commercial real estate industry that focus on: 🏘️ Expanding Affordable Housing – Addressing housing shortages through property conversions and an interagency task force to streamline building processes and reduce regulatory barriers. 💵 Preserving Growth-Focused Tax Policies – Advocating for policies that encourage investment, job creation, and economic stability, such as those supporting capital gains provisions, Section 199A, and foreign investment. 🌿 Advancing Sustainability – Enhancing energy capacity and streamlining permitting to support sustainable development. Commercial real estate is integral to our nation’s economy and communities. Policymakers at all levels must act decisively to support these initiatives and strengthen real estate’s role in economic resilience. Learn more about our 2025 priorities here ➡️ : https://bit.ly/3B5fGxJ

We are proud to celebrate our President & CEO Jeffrey DeBoer for being named one of The Hill’s Top Lobbyists for the seventh year in a row! Jeff’s leadership and advocacy continue to drive meaningful change for the #CRE industry and beyond. Read Jeff’s thoughts:

How are property conversions helping to boost the #CRE industry’s recovery? • Reducing office vacancy rates. Office-to-residential conversion projects remove office space from the market, shrinking excess supply. As of Q3 2024, 71 million sq. ft. or 1.7% of U.S. office inventory was planned for or already undergoing conversion. • Transforming obsolete buildings. Conversions give buildings a new lease on life, turning underutilized real estate into productive assets that can fuel future growth. 73 projects have already been completed in 2024, with 30 scheduled for delivery by year-end. • Revitalizing downtowns. Property conversions bring residential units and people back to urban areas that were hit hard by the pandemic, helping to attract more residents, visitors and businesses. • Expanding the housing supply. Property conversions add new housing units to in-demand areas, helping to alleviate shortages. Since 2016, conversion projects have increased the multifamily supply by 28,000 units, with another 38,000 units expected to be added from projects currently planned. Check out the latest from CBRE on the growing momentum for property conversions: https://bit.ly/3CAVJyW Read more about the #CRE recovery in Roundtable Weekly: https://bit.ly/3OjoYcb

RER’s Real Estate Capital Policy Advisory Committee (#RECPAC) met last month in NYC to discuss the economic outlook, political landscape, and capital markets issues like Basel III that have serious implications for the real estate industry. Thank you to Roundtable Chair Kathleen McCarthy Baldwin for kicking off the meeting, and RECPAC Co-Chairs Bryan McDonnell, Rex Rudy, Miriam Wheeler, and Working Group Chair Michael Lascher for leading such a productive discussion. Big thanks as well to our RECPAC members who provided invaluable policy insights that will help shape the #CRE policy agenda for the year ahead. We look forward to working with the Trump administration and the 119th Congress to strengthen the economy, capital markets, and the commercial real estate industry. Read more: https://bit.ly/4fGxMF7

How should the U.S. tackle the #affordablehousing crisis? 🏡 The Roundtable is advocating for bipartisan policy solutions that will ease housing costs and expand the supply of new #housing. Key priorities include: • Streamline permitting & zoning to accelerate housing projects 🏗️ • Support 🏢➡️🏘️ property conversions to boost housing supply • Strengthen public-private partnerships 🤝 • Expand affordable housing incentives, such as the LIHTC 🏠 We urge policymakers to support these critical reforms to address housing affordability across the country. Learn more in Roundtable Weekly & our Fall Policy Priorities: https://bit.ly/3BZrmlE https://bit.ly/4g30csH #AffordableHousing #HousingPolicy #CRE

America’s energy grid is under increasing strain as demand for electricity surges due to #AI, data centers, electric vehicles, and a growing digital economy. The bipartisan Energy Permitting Reform Act of 2024 (S. 4753), co-sponsored by Senators Joe Manchin (I-WV) and John Barrasso (R-WY), could be a game-changer for our power infrastructure. What’s at Stake? • A Wood Mackenzie report forecasts a 15% jump in U.S. power demand by 2030, putting immense pressure on an already-stressed grid. • Without permitting reform, meeting demand for electricity will only become harder and more costly. • Streamlining permits is essential for launching critical energy projects that will support America’s transition to cleaner and more reliable power. Why Now? Congress has a unique window in its lame-duck session to pass this legislation, which would accelerate energy infrastructure projects and ensure our grid can handle the demands of a modern economy. RER urges policymakers to seize this opportunity to strengthen America’s energy infrastructure for the future. ⚡ Read more in Roundtable Weekly: https://bit.ly/40uv8gR #PermittingReform #EnergyInfrastructure #CleanEnergy

📈 The Real Estate Roundtable’s Q4 Sentiment Index reached a three-year high, scoring 73—an increase of 9 points from last quarter, and the highest since Q4 2021. This upward trend reflects industry leaders’ optimism for a gradual recovery in #CRE as we head into 2025. Highlights include: ● Improved equity and debt capital availability, with 80% of respondents anticipating even stronger capital access next year. ● Positive shifts in office leasing and a renewed return-to-office trend, providing a stable foundation for continued growth. ● High optimism for asset values, with 98% expecting them to increase or remain steady in the coming year. With a cautiously optimistic outlook, we’re encouraged by these indicators of resilience and stability across CRE sectors. Explore the full report for more insights on industry trajectory: https://bit.ly/4eBFhfd #CommercialRealEstate #SentimentIndex #RER